Parallel market: Naira trades at N473/$ on Monday

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By Kayode Tokede

The naira at parallel market gained 0.42 per cent to close at N473 against the dollar.

As the local currency lost 0.85per cent and 0.37 per cent against the Pound and Euro printing at N590 and N542 respectively

At the Investors & Exporters (I & EFX) window, while the Naira closed flat at N389.25 against the dollar, it inched down by 0.02 per cent against the Pound to close at N506.45.

Against the Euro, the Naira gained by 0.29 per cent to close at N458.08.

According to FMDQ OTC, a total of $17.23million turnover was traded on Monday by Investors.

However, the Naira at Central Bank of Nigeria (CBN) closed flat at N381 against the dollar.

“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment one research explained.

The overnight lending rate expanded by 12.23ppts to 14.3per cent, as banks funded for CBN’s whole FX auction ($110.00 million).

 Trading in the NTB secondary market was mixed, as the average yield was flat at 1.8 per cent.

Across the curve, average yield expanded at the short (+two basis points) end, following a sell-off of the 45DTM (+15 basis points) instrument, while it contracted at the mid (-2 basis points) segment, due to demand for the 101DTM (-8bps) instrument. Yield was flat at the long end.

On the other hand, average yield contracted by 18 basis points to 4.1per cent at the OMO secondary market.

Elsewhere, trading in the Treasury bond secondary market was bearish, as average yield expanded by eight basis points to 7.1per cent.

Across the curve, average yield contracted at the short (-10 basis points) end, following demand for the JAN-2022 (-92 basis points) bond, while it expanded at the mid (+29 basis points) and long (+11bps) segments, as investors sold off the MAR-2027 (+63 basis points) and APR-2037 (+30 basis points) bonds, respectively.